Japanese bank spreads tighten on possible state capital injection

After an initial widening earlier this week, as participants became sceptical of government support for the BoJ’s initiatives, credit spreads on senior five-year bank debt tightened about 10 to 15 basis points.The tightening was also fuelled by speculation that Hakuo Yanagisawa, minister in charge of the country’s financial watchdog, the Financial Services Agency (FSA), who has been against further bank bailouts, could be replaced as early as Monday, paving the way for a government bailout o

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